Gday all.
If you have an IP financed on a IO loan you are only paying the intrest on the loan each month (or week or when ever you are set up to pay it).
With an IP the interest you pay on the money you borrowed to buy the property is tax deductable right?
So.......
Does this mean that (as long as you pay enough tax on your salary to cover it) every cent you pay off on the IO loan you get back at tax time?
Monthly IO loan payment + Monthly rates, body corp, management fees and maintinence costs - rental income = monthly cost of ownership (-ve geared) with the monthly cost of ownership being 100% deductable so long as you pay enough income tax on your salary to be able to claim these expenses back.
Am I right?
Also when you have reached a point where you own enough -ve geared property so that you are claiming back all of the income tax you pay you need to really try hard to find +ve geared properties because you wont be able to claim any more losses back.
Is that right too?
Cheers
If you have an IP financed on a IO loan you are only paying the intrest on the loan each month (or week or when ever you are set up to pay it).
With an IP the interest you pay on the money you borrowed to buy the property is tax deductable right?
So.......
Does this mean that (as long as you pay enough tax on your salary to cover it) every cent you pay off on the IO loan you get back at tax time?
Monthly IO loan payment + Monthly rates, body corp, management fees and maintinence costs - rental income = monthly cost of ownership (-ve geared) with the monthly cost of ownership being 100% deductable so long as you pay enough income tax on your salary to be able to claim these expenses back.
Am I right?
Also when you have reached a point where you own enough -ve geared property so that you are claiming back all of the income tax you pay you need to really try hard to find +ve geared properties because you wont be able to claim any more losses back.
Is that right too?
Cheers